Scarcity principle

The scarcity principle is the idea that limited availability of resources increases their perceived value. When something is in short supply, people often desire it more, whether it's a product, time, or opportunity. This principle affects decision-making, as individuals and organizations prioritize what is rare or limited. In general knowledge, it highlights how scarcity can lead to competition, innovation, and prioritization in both everyday choices and broader economic contexts. Understanding this concept is essential for grasping how markets operate and how people respond to availability.